As Administered in Most States in the United States, the Retail

question 14

Multiple Choice

As administered in most states in the United States, the retail sales tax:

• A)has zero excess burden.
• B)distorts the choice between taxed goods and untaxed services, resulting in some efficiency loss.
• C)taxes all services.
• D)discourages saving.

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Definitions:

Negative Number

A real number that is less than zero, indicating a direction opposite to positive numbers.

Null Hypothesis

A type of hypothesis used in statistics that proposes there is no statistical significance between two variables, or that a statement of no effect or no difference will be true.

Two-Tailed

In hypothesis testing, it refers to the methodology that considers both directions of a possible effect, allowing for investigation of deviations in two opposite directions from the null hypothesis.

Pearson Correlation

A metric that quantifies the linear relationship between two variables, providing a value in the range of -1 to 1.